ONGC to raise Rs1,671 crore for associate company OPaL

29-Mar-17

State-run Oil and Natural Gas Corp. Ltd (ONGC) plans to raise Rs1,671 crore for its associate company, ONGC Petro additions Ltd (OPaL), as per two officials aware of the development have been reported by Business Standard. ONGC holds 49.36%, GAIL (India) Ltd 49.21% and Gujarat State Petroleum Corporation (GSPC) 1.43% stake in OPaL, as of March 2016. OPaL operates a US$4.5 billion mega petrochemicals complex in the Dahej special economic zone (SEZ), inaugurated by Prime Minister Narendra Modi on 7 March after much delay and cost overruns.

“By next month we would be infusing equity in OPaL to the extent of Rs1,671 crore which we plan to raise through private placements of compulsory convertible debentures,” an official said on condition of anonymity.
The plant will annually produce 1.4 mln tons of polymers such as linear low density polyethylene and high density polyethylene, polypropylene and 500,000 tons of chemicals like benzene, butadiene and pyrolysis gasoline, among other products.

ONGC, GAIL (India) and GSPC also plan to bring private partners into the company. Talks are on with Kuwait-based energy company PIC, an arm of Kuwait Petroleum Corp., for a stake sale in OPaL, chief executive K. Satyanarayana has said. “We are ready to offer as much as 40% to the new partner. However, the talks have been on for about 1.5 years but nothing has been finalised as yet."